Abstract

In many countries, ethnic minorities have a persistent disadvantageoussocioeconomic position. We investigate whether aversion to competing againstmembers of the ethnically dominant group could be a contributing factor to thispredicament. We conducted a lab-in-the-field experiment in rural Bangladeshrecruiting males from the ethnic majority (Bengali) and an underprivilegedethnic minority group (Santal) that is severely discriminated against. Werandomly assign participants into groups with different ethnic composition andelicit a measure of their competitiveness. We find that when compelled tocompete, there are no ethnic differences in performance and that both ethnicgroups perform better in ethnically-mixed groups than in homogeneous groups. Wealso find that the ethnic composition of the group of competitors is animportant determinant of competitive entry and its effect varies by ethnicgroup. Members of the ethnic minority group are less likely to compete ingroups where they are a numerical minority than when all competitors areco-ethnic, whereas the reverse is true for members of the ethnic majoritygroup. This difference is not explained by heterogeneity in performance, riskpreferences, beliefs about relative ability or various socioeconomic characteristicsof individuals or of their opponents. We conclude that differences inunmeasured markers of ethnicity, such as social power and status, must underpinthese differences in preferences for interethnic competition.